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3 Things Everyone Needs To Know About The Economy

1. Your Choice Counts. This thing we call the economy is simply layers of decisions driven by choices. Your choice, as a consumer, determines what producers will make and sell. If there is a good or service that no one wants, demand for that service goes down leading to a decrease in its supply. The market will arrange for the production of goods that society wants, in the quantity society wants.

2. It's Not Just $$$. It's not that money isn't important, but it isn't everything. Money is purchasing power. At it's core, it is a medium of exchange and a weighing scale for determining something's value. Investing and spending money begins with confidence. Yes, confidence. Monetary exchange begins with the faith of the money's owner that their investment will bring them a satisfactory return. Yet, who can quantify confidence? How can anyone measure satisfaction? Sentiment- mental attitude and judgement- is a major determinant of the economy's health. We invest in what we trust.

3. Technology Matters. Think far beyond the latest iPhone or iPad, technology is anything that improves the output or productivity of its user within a given amount of time. In this definition, we see that the first shovel, hammer, and screw driver are also technology. Before their existence, digging dirt, delivering blows against fortified walls, and tightening screws took more resources (in time, people, and energy) to get things done. Technology increases output, improves the products we buy, reduces costs, and levels the playing the field for creating and gathering information. This in part sheds light on why so many countries, businesses, and individuals race for the latest and greatest hi-tech ideas and gadgets: technology improves quality of life.

I hope this leaves you with a better understanding of the economy and what makes it tick.

Thanks for reading,



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